https://www.taxtmi.com/caselaws?id=87682 Where sub-standard inputs are cleared as such without being used in manufacture, payment of duty on clearance by reversing the Modvat credit satisfies Rule 57F(1). The fact that the credit was not reversed immediately on discovery of the defect was held immaterial because the statutory condition was met at the time of clearance. On that basis, the demand for penalty could not be sustained merely for delay in reversal, and the issue was decided in favour of the assessee. en-us Mon, 08 Dec 1997 00:00:00 +0530 Thu, 08 Sep 2011 16:10:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87682 Where sub-standard inputs are cleared as such without being used in manufacture, payment of duty on clearance by reversing the Modvat credit satisfies Rule 57F(1). The fact that the credit was not reversed immediately on discovery of the defect was held immaterial because the statutory condition was met at the time of clearance. On that basis, the demand for penalty could not be sustained merely for delay in reversal, and the issue was decided in favour of the assessee. Case-Laws Central Excise Mon, 08 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87682